Definition: A casual term for the profit a business achieves.
Example: A financial reporter, tired of always using the literal term Net Income states, “Higher expenses for Pro Corporation resulted in its bottom line dropping by 5%”.
Investeach explains: One of the two major financial statements a company produces for the investing public is the Income Statement. The statement ends with the amount of money that is left over after subtracting all of its costs and expenses from the Revenue the company took in. This dollar amount is shown on the bottom line of the Income Statement!
Riddle me this:
1. What does a company’s bottom line represent?
2. On which financial statement does Net Income appear?
3. Where on this statement is Net Income shown?
4. Why do financial professionals use this term and not the more direct term Net Income?
Also known as: Net income, Net profit.
Related terms: Top line.